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Bella is a discount furniture store. Most of the items in the store are overstock and hence tend to be more inexpensive than other furniture. Recently Bella started to display the manufacturers' suggested retail price next to the price it charges to show the savings. Bella is using a ________ strategy.

Respuesta :

Answer:

Reference Pricing

Explanation:

Reference pricing strategy refers to a pricing mechanism whereby the products are priced slightly lower than competitor's products.

When such a pricing strategy is followed, the store owners provide heavy discounts to the buyers to encourage sales.

In the given case, the store deals in discounted furniture. Bella displayed manufacturer's suggested retail price so as to let buyers know of the savings they shall make upon purchase.

Such pricing of goods at a heavy discount thereby showing savings, indicates reference pricing strategy being followed.

Martebi

There are different kind of pricing techniques.  Bella is using a Reference Pricing strategy.

  • A Reference Pricing (RP) is simply known as the price that a purchasers said that they are willing to pay for a good or service.

It is often employed by high-volume purchasers to let their suppliers known their intentions. this kind of pricing needs sufficient competition.

It is also referred to as the price that the customer believes or expects the item should cost based on past experience or knowledge about the product.  

Learn more about Reference Pricing from

https://brainly.com/question/8000552

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